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Sri Lanka state to exit Colombo Hilton, seek property developer

Aug 03, 2017 06:51 AM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Sri Lanka will sell a 51 percent stake in Hotel Developers, a state firm that owns the building in which Colombo Hilton is located, to an investor that can develop its land holdings.

A 4 percent stake in the firm will be distributed to employees free of charge, according to a cabinet decision.

An investment advisory firm will be appointed to seek and short list two to three suitable investors who can develop vacant land owned by the company. The firm has land across the road from the main building where a 'sports centre' is located.

The 51 percent stake will be offered on the stock exchange to the selected investor who will have to bid against each other.

A balance 45 percent stake will be offered at a fixed price through a public offering.

Hotel Developers Lanka Ltd is at the moment 100 percent owned by the Secretary to the Treasury.

The firm was expropriated while being a listed entity. It is not known whether compensation was already paid to shareholders who were expropriated.

The divestment plan makes no mention of expropriated shareholders. (Colombo/July02/2017)